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The Ministry of Finance announced the most important features of the law regulating government contracts concluded by the public bodies after being approved by the House of Representatives for a final days.
The ministry said in a statement on Monday that with the issuance of this law will be canceled law No. 89 of 1998 on the organization of tenders and auctions operated by the government for 19 years, where the new law was prepared to keep pace with economic and social changes to meet the needs of the current and future government.
She added that the issue of contracts concluded by the public bodies is very important in accomplishing its daily tasks, its projects being put forward and its clear impact on the level of public services offered to the society in all its different sectors, as well as their impact on the business environment and climate.
The new law aims at a series of reforms, including the establishment of new rules in contracts based on good governance and sustainable development goals, establishing greater transparency, competition and equal opportunities, improving the business environment and adopting modern trends and good practices in government contracting.
The third audit documents of the International Monetary Fund revealed the governments commitment to adopt the executive regulations of the Government Procurement Law before the end of March 2019 to standardize the procurement rules and the procedures and documents required to encourage the broad participation of the private sector.
According to today s statement, he said Mohammed Meit Finance Minister said that in order to ensure the success of the entry of this law into effect well and achieving the its goals, the General Authority for Government Services Vstqom to prepare executive regulations within six months from the date of the law, which will include rules, procedures and other means necessary to implement controls Its provisions.
Mait said that the most important features of the law regulating contracts concluded by the public bodies is to control the control of public money, where the law subjected the public bodies included in the budget and funds and special accounts, which adds more governance in the procedures of contracting and control public spending.
The minister added that the features of the law also include the development of methods and systems of contracting through the development of a mechanism that enables the administrative agencies to lease movables instead of buying them according to economic feasibility.
The law has also developed sophisticated methods of contracting the two-stage tender route, contracting through framework agreements, and introducing new procedures for contracting consultancy studies to be through limited tender, where the evaluation is based on points system according to the criteria.
The law also regulates the procedures for contracting transactions and contracts for derivatives. The law regulates contracting procedures for transactions that require the contracting authority to speed up the decision by virtue of nature or fluctuations in their prices and economic quantities or covering the future time span, according to the minister.
The law also regulates transactions in international financial markets, derivatives contracts, futures and futures purchases and related ones, something that was not dealt with in the previous law, in order to keep pace with the relevant economic trends and global standards.
The law also aims at developing small, medium and micro enterprises, he said. He gave preference to small entrepreneurs in local tenders and allocated 20% of the annual contracts.
The law also granted the owners of these projects the advantage of not providing an initial letter of guarantee when the process is launched between small companies and others, as well as facilitating the disbursement of advance payments to them.
The objectives and objectives of the law include strengthening the principles of governance and transparency, stressing the declaration of the parties about their expected annual needs as well as their operations, on the portal of government procurement in order to achieve the highest transparency and broadening the base of competition, as well as reducing the number of times the advertisement in newspapers twice to once, , According to the minister.
The minister added that the law also includes the standardization of procedures and the standardization of the forms of the tender documents and the contract forms, which necessitated the commitment of the parties to the models of the specifications and specifications of the contracts, the model contracts, the guides and others issued by the General Authority for Government Services prepared by the ministries and concerned authorities according to their terms of reference and nature of their work.
The law included that the administrative body shall take necessary to include in the brochure the technical specifications and sufficient technical description of the subject of the contract and any additional requirements that it considers to be included in it, as well as the contract form and commensurate with the nature of the process in question.
The Department of Fatwa of the Council of State reviews these models and model contracts, all with the aim of standardizing procedures, speeding the offering and contracting, reducing cases of conflict between the parties to the contract, reducing the time taken in the tender and approving contracts, according to the statement.
The law also aims to implement the electronic procurement system, in order to achieve the principles of transparency and broadening the base of competition in government contracts, and to facilitate the private sector to participate in the processes being put forward, according to Muait.
He said that the law adopted that the transition to the stage of the electronic system and in accordance with the procedures are done in order to build a real database automatically occur for contracts, reducing the time taken to end the procedures and provide greater transparency in dealing and prevent corrupt practices.
He added that the features of the law include the encouragement of national industry. He stressed the commitment of the authorities to implement Law No. 5 of 2015 on the preference of the local product in government contracts and its amendments, in light of the states keenness to support and encourage national industry as the most important axis of economic development.
Among the features of the law are the simplification of the procedures. The tender procedures, which do not exceed 300 thousand pounds, have been simplified to be decided through a single committee. The financial limits stipulated by the law have been reviewed in line with the current values ??of money. Decision-making, according to the minister.
The primary insurance rate in the law has been reduced to 1.5% of the estimated value of the operation in order to encourage the business community to deal with the parties in the operations.
The law raises the period of payment of the final insurance and the organization of the mechanisms of refunding insurance immediately after the end of the guarantee period in order to facilitate procedures and reduce the administrative cost to the business community in order to achieve the objectives of competition and the interests of public bodies at the same time,
He said that the law also aims to rationalize government spending, as the procedures for estimating the annual needs have been developed and linked to the preparation of the budget, the procedures of market research and the establishment of the estimated value on a sound basis.
The standards for adjusting the prices of contracts for business contracting were also standardized through the Ministry of Housing setting up a list of changing items for the different types of projects, as well as organizing procedures for adjusting the volume and quantity of contracts.
The law also aims at raising the efficiency of contract workers in the administrative bodies. The contract workers are required to pass the regular training programs as a condition for their continued work in this field. This is aimed at improving their performance, upgrading their skills and developing their skills according to the requirements.
The law requires the preparation of a code of conduct for employees of government contracts issued by the Minister of Finance to be committed to them, in order to raise the level of performance of workers in this area through the development of performance standards and professional and ethical determinants They are adhered to and preserved.
He added that there are many initiatives, procedures and training courses will be prepared by the Ministry and the Authority and will be in line with the issuance of the executive regulation aims to facilitate the application of this law by employees in the administrative bodies, as well as clients of the business community from suppliers, contractors, service providers and consultants.
These initiatives and courses are aimed at explaining the objectives and content of the law, as well as enlightening the business community with new procedures that will enable the establishment of greater transparency, competition and governance.
He explained that in order to improve the contracting profession and the level of performance of its employees, a training program will be prepared for the diploma level in the field of government contracts, which is an approved training program. The degree holders will have professional advantages to enable them to upgrade their careers.
"The law was prepared through a participatory approach that allowed the direct participation of all concerned and relevant parties from different categories, including government agencies and their clients from the business community, international financial institutions and development partners.
He added that these parties also included the legislative section of both the State Council and the Ministry of Justice, as well as consultation sessions of the community dialogue held by the specialized committees in the House of Representatives.
In addition to finalizing the executive regulations before the end of March, the government also pledged to the International Monetary Fund (IMF) to establish a clear and robust framework for resolving complaints and to apply procurement regulations in a coherent and uniform manner to all government agencies, including central, local and economic authorities.
Government procurement measures pledged by the Government to the Fund also included the prime ministers approval of a reform plan to ensure that the procurement rules of state enterprises are consistent with the new government procurement law by June 15, 2019.
These measures also include the creation of a government procurement portal before the end of May 2019 to enhance competition, improve public spending and reduce corruption.
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